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Supply & Demand
Supply & Demand
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Supply & Demand Test Review
Flashcards
36 cards
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Practice quiz
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Questions
36
Answers
1
People choosing a cheaper interchangeable good or service over a more expensive option
Complementary Goods
Technology
Substitute Goods
Consumer Expectations
2
When the price of the resources used to make the products affects supply
Labor Productivty
Market Size
Number of Producers
Input Costs
3
If you raise the price of the product and your total revenue goes down then the demand is
Elastic
Inelastic
Unit elastic
Equilibrium
4
Which image represents a demand curve?
option 4
option 2
option 1
option 3
5
The following products would be considered Compliments
hamburgers and chicken sandwiches
hot dogs and hot dog buns
french fries and tots
pepsi and coke
6
When a person’s ability to buy goods and services changes with their purchasing power
Income
Input Costs
Substitute Goods
Complementary Goods
7
When a company changes their supply if they expect the price to change in the future
Producer Expectations
Number of Producers
Market Size
Consumer Expectations
8
When the government regulates (sets up rules) designed to control business behavior
Government Action
Market Size
Number of Producers
Labor Productivity
9
What is demand?
The desire to provide a good or a service
The desire for a good and the ability to buy it
The desire to provide a good and the ability to sell it
The desire for a good and the desire to buy it
10
If a good is a need then the demand is
Inelastic
Rubberband
Elastic
Paper Clips
11
This is government support or money to encourage an economic activity (and increase supply)
Tax Return
Excise Taxes
Tariffs
Subsidies
12
According to the law of demand...
As price increases, demand increases
As price increases, supply increases
As price increases, supply decreases
As price increases, demand decreases
13
If the price of pepsi goes up, what will happen to the demand for coke?
it will stay the same
it will increase
who knows coke tastes horrible anyway
it will decrease
14
This is intended to discourage consumption of specific goods (and decrease supply)
Taxes
Entitlements
Tax Returns
Subsidies
15
When demand changes as the number of consumers increases or decreases
Complementary Goods
Labor Productivity
Market Size
Number of Producers
16
A set minimum amount a producer can charge for a good or service
Price Basement
Price Ceiling
Price Cap
Price Floor
17
When demand is affected by a good or service’s popularity
Number of Producers
Consumer Expectations
Market Size
Consumer Tastes
18
When other producers join (or leave) the market due to a desire for profit or competition
Input Costs
Number of Producers
Market Size
Labor Productivty
19
According to the law of supply...
As price increases, supply increases
As price increases, demand decreases
As price increases, supply decreases
As price increases, demand increases
20
What is supply?
The desire for a good and the ability to buy it
The desire to provide a good and the ability to sell it
The desire for a good and the desire to buy it
The desire to provide a good or a service
21
the highest price you are LEGALLY able to pay is called
equlibrium
shortage
price floor
price ceiling
22
A set maximum amount a producer can charge for a good or service
Price Floor
Price Ceiling
Price Cap
Price Basement
23
When demand is affected by the belief that a price of a good or service will change
Producer Expectations
Market Size
Consumer Tastes
Consumer Expectations
24
Example: When someone buys a slice of pizza instead of a burger because the pizza is cheaper
Alternatives
Substitutes
Complements
Frugality
25
Which image represents a supply curve?
option 3
option 1
option 4
option 2
26
A shortage occurs
When supply and demand shifts occur
When demand is greater than supply
When supply and demand are equal
When supply is greater than demand
27
Which of the following would NOT shift the demand curve for a good or service?
a change in the price of a related good
a change in the price of the good or service
a change in income
change in expectations about the price of a good or service
28
A price that is HIGHER than equilibrium will cause a __________ in the market.
equilibrium
demand to be greater than supply
surplus
shortage
29
An example of a price floor is...
A Subsidy
Rent Control
Minimum Wage
A Tax Break
30
When their is a Shortage in a market the Price will
it depends
Decrease
Stay the Same
Increase
31
Applying scientific methods and discoveries to the production process
Number of Producers
Labor Productivity
Input Costs
Technology
32
When an increase in demand for one product causes an increase in demand for another product
Complementary Goods
Input Costs
Consumer Tastes
Substitute Goods
33
This is where supply and demand meet on a graph
Equilibrium Price
Equilateral Place
Equilibrium Quality
Equal Place
34
A lower quality good. When income rises, demand for inferior goods decrease.
Inferior good
Utility good
Expensive good
Normal good
35
The amount of goods or services that a person can produce in a given time
Input costs
Labor productivity
Consumer Expectations
Producer expectations
36
A surplus occurs
When demand is greater than supply
When supply and demand are equal
When supply and demand shifts occur
When supply is greater than demand
